The third homework is an exercise on electricity market. The objective is to get you familiar with the quantitative side of the electricity market, whether it is a vertically-integrated market or not. Assume Country X has an electricity market with supply and demand being given below: Qp = PD + 200 = Qs = -3Ps + 300 = Part C-horizontally-integrated market After a few years, the government decides to reform the electricity market so that there are a number of power plant firms as well as a number of electricity distribution firms. The electricity market will now be controlled by a regulator using an auction system. A sample of the bids is given by the table below: Electricity Producers Electricity Distribution Asking price / kWh quantity/kWh Asking price / kWh quantity/kWh $ 0.74 25 $ 0.56 30 $ 0.32 20 $ 0.34 60 $ 0.46 35 $ 0.55 25 $ 0.53 25 $ 0.64 25 0.64 30 $ 0.43 40 By studying the bids, 9. Find the range of the equilibrium market price 10. Find the equilibrium market quantity 11. Find the total welfare